The TDSequentialStrategy is a trading strategy that uses several technical indicators to generate buy and sell signals. Here is a breakdown of what the strategy does:
populate_indicators: This function adds various technical analysis (TA) indicators to the provided DataFrame. It includes indicators such as 'exceed_high' and 'exceed_low' which are initially set to False.
It also calculates 'seq_buy' and 'seq_sell' based on the close prices, using a shifting window of 4.
These variables represent the sequential buy and sell counts.
populate_buy_trend: Using the TA indicators from the DataFrame, this function populates the 'buy' column. It sets the value to 1 when the conditions are met: 'exceed_low' is True and 'seq_buy' is greater than 8. populate_sell_trend: Similar to the previous function, this one populates the 'sell' column based on the TA indicators. The 'sell' column is set to 1 when either 'exceed_high' is True or 'seq_sell' is greater than 8. The strategy utilizes sequential counts of buying and selling occurrences to identify potential entry and exit points in the market. The 'exceed_low' and 'exceed_high' indicators help determine if the current price exceeds previous lows or highs, respectively. By combining these indicators, the strategy aims to capture trends and generate signals for buying and selling.